Quebec City’s CO2 Solutions (TSX-V: CST) has received a $15 million grant from Alberta’s Climate Change and Emissions Management Corporation (CCEMC) to advance the commercial deployment of the company’s carbon capture technology at a scale of 300 tonne-CO2/day for a major Alberta oil sands company.
“CCEMC is pleased to help fund the deployment of this transformative technology that can reduce the cost of carbon capture,” said CCEMC CEO Steve MacDonald. “This project will result in a new installation and create jobs here in Alberta, and is an important step forward in our transition to a lower carbon future.”
At the release last week of results from their Valleyfield, Quebec demonstration plant, CO2 Solutions pointed to the relatively lower cost of their enzyme-driven carbon capture technology, verified by third-party Tetra Tech, Inc., who found that the demonstration plant’s core process capture cost was $28/tonne for 1,250 tonne-CO2 per day, well below the proposed Alberta carbon tax and the United States Department of Energy’s target for proposed carbon capture processes.
“We are grateful for the very significant support from the CCEMC, which we see as a clear validation of the strength of our technology as a low-cost solution for the mitigation of carbon emissions,” said CO2 Solutions President & CEO Evan Price. “This announcement comes as we successfully complete our Valleyfield demonstration project that was realized in part due to an earlier grant from the CCEMC, and we thank them for their continued support. This Grant means we can accelerate the scale-up of our technology and make an impact towards the reduction of GHG emissions and the beneficial reuse of CO2. Importantly, the low-cost nature of our technology can help industry achieve this without affecting its ability to compete.”
In 2014, CO2 Solutions was awarded a $500,000 grant by CCEMC to develop their “Optimization of Enzymatic System for CO2 Capture from Oil Sands Production” technology, at which time they estimated that reuse applications for CO2 represented an annual addressable market of at least $3.3 billion.
CCEMC’s 2014 grant was $500,000 for a project with a value of $1,794,239.
The $15 million grant that CCEMC has just issued to CO2 solutions is for a project budgeted at approximately $30 million.
Receipt of the grant is subject to securing the remaining funding from other sources, and CO2 Solutions is currently in active negotiations with industrial partners to complete the project’s funding.
CO2 Solutions is currently pursuing non-dilutive financing to fund the balance of the project not covered by the CCEMC Grant.
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